By the end of 2027

Lenzing Closes Facility—Hundreds of Jobs Lost

Lenzing will phase out fiber production in Heiligenkreuz by the end of 2027.(Bild: Kerschbaummayr Werner)

In addition to the 600 jobs already announced, fiber manufacturer Lenzing is cutting numerous other positions. Fiber production at the Heiligenkreuz site in Burgenland will be phased out by the end of 2027, the company announced on Monday. However, the company plans to find a new owner for the site, where 285 people are still employed.

Georg Kasperkovitz, CEO of the Lenzing Group, explained to the APA on Monday evening: “Lenzing will withdraw from Heiligenkreuz and try to ensure that the site continues to operate under a new owner.” The search will begin “tomorrow” and, “based on experience, could be completed within a few months,” the manager hoped. The goal is to preserve as many jobs as possible. The company is also withdrawing from England with the closure of its Grimsby facility.

About 2,000 fewer jobs worldwide by the end of 2027
The global workforce of 7,700 full-time equivalents (as of the end of 2025) will decline significantly by the end of 2027, the company said. Kasperkovitz stated that the plan is to reduce the workforce by approximately 2,000 positions by that time. However, the Lenzing CEO emphasized that this is by no means a closure or cost-cutting program as part of the new strategy, pointing to the confidence in the plans shown by shareholders and other investors, who are providing up to 600 million euros in fresh capital. The headquarters in Lenzing, Upper Austria, will also be upgraded.

CEO Georg Kasperkovitz described it as a “difficult but necessary decision.”(Bild: Neumayr Fotografie - Christian L)

Doskozil Says He Will “Not Let Employees Down”
Burgenland Governor Hans Peter Doskozil (SPÖ) assured on Monday evening that the state “will not let down” the Heiligenkreuz plant’s location and employees. Doskozil lamented that the decision was a “painful course of action for southern Burgenland on the part of corporate leadership” that could not be influenced politically. He had a detailed conversation with Kasperkovitz. During that conversation, he was assured that production was secured through the end of the year and could possibly continue beyond that. The state will use this time to work on a sustainable solution.

“Dramatic News”
ÖVP State Party Chairman Christoph Zarits also referred to the news as “dramatic” in a press release: “A social plan alone is not a sufficient response. Now everything must be done to secure these jobs and the location.”

Employees in England and Indonesia Also Affected
Cost savings of 25 million euros have already been achieved through reductions affecting 267 administrative staff members. With the target of 600 employees—announced last fall—the company aims to save 45 million euros in this sector. The remaining savings, totaling 120 million euros, are to be achieved through the newly announced measures. For the affected employees in Grimsby, the company intends to coordinate with employee representatives and the relevant stakeholders. In Purwakarta, Indonesia, Lenzing is reducing production to two lines and intends to implement the associated job cuts in accordance with local legal regulations.

Support from Oberbank & Co.
The cost-cutting measures are supported by Lenzing’s major shareholders, the B&C Group and Suzano, as well as by Oberbank. Through these plans, which are part of a strategic realignment, the company has reached a “comprehensive refinancing agreement with its major lenders.”

600 Million for Strategic Realignment
To strengthen its financial structure, Lenzing intends to carry out a capital increase with subscription rights totaling up to 300 million euros, for which approval is required at an extraordinary general meeting expected to take place on or around August 25, 2026. In addition, the new financing agreements will provide up to 300 million euros. The maturities of existing liabilities have been extended until 2030.